Osama Bin Laden killed. Hunt Brothers from 1980 repeating itself. Warmer weather. Fluffy bunnies being born into the new world. Much speculation is being delivered on why commodities crashed last week. (2008 ring a bell?) All these are nonsense of course. There are a number of reasons why silver, gold, and just about every other commodity, took a dump this previous week. It was the perfect storm.Silver dropped 27% for the week. Gold about 7%. Copper is down 7% as well. While oil fell 16.6% ending up below $100 a barrel. (They didn't receive the memo at the pumps yet.)Comex raised the margin requirements on silver, making it more expensive to speculate on. Demand tends to go down when the price goes up...for anything. Bloated technical charts, over­extended short-term relative strength indicators, and economic reports which no one can decipher and, presto, the market freaked out and the house of cards fell. Commodities were dropping like flies, as no one wanted to be the last one out. When things go up very quickly, a correction is almost always a given. But why were investors buying gold, silver and other commodities in the first place? Was it just because the Fed printed some money, a lot of it? Not hardly. Commodities, in general, were in an up­trend for most of the last decade, as the world speculated global demand for hard assets would continue to increase faster than the supply (which it has). Others became disgusted with the Fed when it kept the overnight borrowing rate below the inflation rate for years, leading to the housing bubble. Essentially, Greenspan, Bernanke and other "geniuses" have been showering money on the U.S. economy to keep it afloat since the tech bubble popped way back when. Has that changed? No. The Fed doesn't have to buy another treasury security or print another dollar and the monetary policy would still be incredibly accommodating. It has created over $2 trillion in new money over the last two years, and doesn't appear to have any immediate plans to take it off the table. Washington has pushed the pedal to the metal and all the way through the floorboard, and any unwinding of all the various stimuli will take years to repair.We still stand by our previous predictions. They may, however, be somewhat delayed. The fact is, the fundamental stories behind commodities are largely intact. We may more than likely see half of the loss rally back, then another dip to even lower lows, then a more agressive climb to new all time highs. The smart money will more than likely get back on.